State-owned Assets Supervision and Administration Commission of the State Council, Several Opinions on Regulating the Activities of State-owned Shareholders of Listed Companies

Issued: June 16 2009

Main contents: Where a state-owned shareholder intends to sell through the securities trading system its shares in a listed company in excess of the stipulated ratio, it shall submit a share sale proposal including details such as the quantity of shares to be sold, the floor price, and time limit for sale to the state-owned assets supervision and administration authority for approval (Article 6). Article 8 stipulates that the number of shares pledged by a state-owned shareholder may not exceed 50% of the total number of shares it holds in the listed company, and the pledge is provided solely to the company, or its wholly-owned or controlled subsidiary. The value of the pledged shares shall be reasonably determined based on the listed company's share price.

Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21; PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31; PRC, Law on State-owned Assets of Enterprises, Oct 28 2008; Tentative Regulations for the Supervision and Administration of Enterprise State-owned Assets, May 27 2003, CLP 2003 No.6 p.36; Tentative Measures for the Administration of the Transfer of Shares of Listed Companies Held by State-owned Shareholders, Jun 30 2007, CLP 2007 No.6 p.13; and Tentative Provisions for the Administration of the Acquisition of Shares of Listed Companies by State-owned Work Units, Jun 28 2007, CLP 2007 No.6 p.14